Territorial Tax System – Georgia

All salaries and employment income in Georgia taxed at 20%. Employer withholds tax monthly. Simple calculation: salary × 20%. No progressive brackets.

Individual entrepreneurs pay 20% on net profit (income minus expenses). Can choose small business status and pay 1% on turnover up to 500,000 lari.

Residential property rental: 5% on income when registered with tax service. Commercial property rental: 20% on net profit. Very favorable for landlords.

Territorial principle: foreign-source income is not taxed for individual residents. Working remotely for foreign companies — no tax.

Low 5% rate on dividends from Georgian and foreign companies. This is final tax. One of the lowest rates in the region. Efficient for investors.

Crypto trading for individuals completely tax-exempt. Not considered Georgian income. Georgia is crypto haven. For companies — 15% upon distribution.

Interest income from Georgian sources taxed at 5%. Interest from foreign banks for individuals not taxed due to territorial principle.

Selling property after 2 years ownership completely exempt from profit tax. Stimulates long-term real estate investments.

Selling property before 2 years ownership, profit taxed at 5%. Profit = sale price minus purchase price.

Property owners pay up to 1% of market value annually. Houses up to 200 sq.m and land up to 5,000 sq.m exempt. One of the lowest property taxes.